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BBC colour TV licence fee to increase to £145.50

An order laid before the House of Commons has conformed that the cost of annual BBC colour TV licence fee will increase by 2 per cent to £145.50 per household from 1 April. The cost of a black and white TV licence will increase by 1 per cent to £49.

The BBC and the government had agreed for a six-year licence fee deal in 2006. This is set to expire in March 2013.

The deal allows a 3 per cent annual increase for the first three years and 5 per cent for next two years. The level of licence fee for the final year is not yet set.

Last year, the Tories' attempted to freeze the fee at £139.50, but the move got defeated in the House of Commons with the backing of Labour and Lib Dem MPs.

Now, however, all political quarters are talking about the need for the BBC to get along with less money.